Fintech firm outlines growth plans with £16.5m venture capital investment
A Bournemouth fintech firm has outlined its plans for growth after securing £16.5m of venture capital investment.
Twenty7tec specialises in developing market information platforms for financial advisors, mortgage brokers, lenders and more, with over 16,000 daily users. Founded in 2014, the business has a 100-strong workforce and a client base including Aviva, Barclays, Virgin Money and AJ Bell.
It has secured a minority equity investment funding package from the Business Growth Fund, which provides venture capital for small and mid-sized businesses. The funding has been earmarked to support new product development and recruitment, while also allowing the business to explore M&A opportunities.
FRP’s Corporate Finance team, led by partner Clive Hatchard, director Richard Boyden and associate director Chris King, advised Twenty7tec on the investment, having been mandated to find an investor to back growth equity, building on a relationship developed through three previous acquisitions on which FRP also advised.
As part of the deal, Angela Williams, formerly of British Airways, Centrica and Land Securities, will join the Twenty7tec board as non-executive chair, bringing a wealth of experience in refining and executing growth strategies.
James Tucker, CEO of Twenty7tec, said: “Since founding the business in 2014, we have consistently strived to revolutionise how financial advisers of all types use technology to deliver exceptional advice to their clients. BGF understand our business and the market in which we operate and are as excited by the opportunities in front of us as we are. With BGF as our partner, we will move quickly to further enhance the talent within our business, invest in our products, and continue to seek opportunities for inorganic growth that are complementary to our existing business.
“We’re very pleased to have the support of Angela in the role of non-executive chair and look forward to benefitting from her wealth of experience in helping businesses to scale.”
The latest deal comes after FRP Corporate Finance advised Twenty7Tec on its acquisition of Bluecoat Software in 2022.
Clive Hatchard, partner at FRP Corporate Finance, said: “Twenty7Tec is a longstanding FRP client with a proven track record as an innovator of fintech solutions across both the mortgage and wealth advisory markets. In BGF, it has secured an investor that understands the huge potential of its software proposition and growth opportunities in its end-markets.
“This investment will support Twenty7Tec’s ongoing organic and acquisitive growth journey and I’m sure it will prove a mutually beneficial partnership. We look forward to seeing the continued success of James and the team.”
BDO provided vendor financial due diligence while CIL provided vendor customer due diligence to Twenty7Tec.
Law firm Osborne Clarke advised BGF. Its team included Bristol-based Tracey Wright, partner and head of the firm’s tax group, plus Olivier Jacquelin, associate in the corporate practice, and associate director Rhiannon Jones, who provided incentives advice.
The team was led by corporate partner Rob Hayes with associate director Robert Pook, senior associate Sian Daly and associate John Annan. Tax advice was also provided by partner Mat Oliver and senior associate Anna Reynolds while incentives advice also came from partner Michael Carter, associate Maryam Khalifa and senior associate Stuart Rose.
